Former Trump Adviser Warns Credit Card Rate Cap Could Limit Access to Credit for Millions
WASHINGTON – A proposed nationwide cap on credit card interest rates could severely restrict credit access for low-income Americans, according to a new report by Steve Moore, a former economic advisor to President Trump. the analysis, released this week by Moore’s advocacy group Unleash Prosperity, argues that limiting interest rates would force lenders to curtail offerings to higher-risk borrowers.
The 10 Percent Credit Card Interest Rate Cap Act, sponsored by Senators Josh Hawley (R-Mo.) and Bernie Sanders (I-Vt.), aims to impose a 10% annual percentage rate (APR) cap on all credit cards. However, Moore contends that banks need to charge rates commensurate with the risk associated with lending to individuals with lower credit scores.
“without the interest rate penalties on late payments, many millions of low-income Americans with low credit scores may not have access to credit at all,” Moore wrote in the report. “this is not disparate or discriminatory treatment. And the people who do pay their credit card balances, but have poor credit ratings, would be the big losers as credit would be harder or impractical to come by.”
While President Trump has previously voiced support for a national interest rate cap, Moore expressed uncertainty about whether that position would hold if the former president fully understood the potential consequences. “Trump has a bit of an economically populist streak,” Moore said during a recent interview on Fox Buisness. “I don’t know his position on this, but I could see him perhaps saying this is not fair to low-income people.”
the debate highlights the ongoing tension between consumer protection and maintaining access to credit for all segments of the population.
